The $44 billion beauty industry is competitive no matter where you are, but in California, you compete with more than 27,000 hairstylists and beauty professionals. If you work in Los Angeles County, you operate in one of the densest hubs for this profession – more than 7,500 hairdressers, according to the Bureau of Labor Statistics. Excelling in this industry means refining your craft and making smart choices for your business. That includes finding the right insurance to protect your career.
Per California law, hair and beauty salon owners must carry workers’ compensation for their employees, including part-time help. Though not legally required, professional liability insurance can provide financial protection if you are sued over your beauty services. If you own or rent your salon space, you’ll often need general liability insurance to comply with lease agreements.
Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers. Read more to learn more about business insurance requirements and costs for California beauty salons. Or simply start an application to get your free quotes today.
Key insurance policies for beauty salons in California
The most common policies for California salon owners depend on a variety of factors, including number of employees, revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business structure.
||General liability / BOP
|Contractor / freelancer
General liability insurance: General liability insurance is the foundation of business protection for hair and beauty salons. Coverage extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.
Business owner's policy (BOP): Beauty and hair salon owners sometimes qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability at an affordable rate. Property insurance can protect your salon (if you own the building or space) and the styling equipment you depend on to offer your services.
Professional liability insurance: If a client hires you on retainer, their contract may require you to have this policy. But even if you work by appointment only, this coverage, also called errors and omissions insurance, can help pay for legal expenses if you’re sued over unsatisfactory services.
California workers' compensation insurance: California requires all employers to carry workers’ compensation, even if they only have one part-time employee. If an employee is injured on the job, workers’ comp can help pay for their medical fees and lost wages.
Unfortunately, workplace injuries are common in the beauty industry. Employees can easily suffer burns from styling irons or slip on slick floors near rinse stations. According to the Bureau of Labor Statistics, most hairdressers and hairstylists were injured in 2016 because of:
- Overexertion and bodily reaction
- Falls, slips, and trips
- Contact with objects or equipment
- Repetitive motion
Carry workers’ comp to pay for these occupational injuries, but also reduce the chance of these events by keeping the floors dry and giving employees chemical safety training.
Business insurance costs for beauty and hair salons in California
According to an analysis of Insureon applications, the cost of beauty salon insurance in California diverges slightly from the national median. Hairdressers in California may pay a little more for their general liability insurance than they might in other parts of the country. This policy costs about $500 a year ($42 per month) for hairdressers at the national level, but $713 a year ($59 per month) for California hairstylists. However, stylists tend to pay less than the yearly national median for professional liability insurance ($480 versus $422).
Workers’ comp is the most notable price variance. At the national level, this policy costs salons a median of $1,641 a year. In California, salon owners pay a median of $4,937 a year for their protection. However, the number of employees significantly impacts these rates. The fewer employees you have, the lower your workers’ comp insurance bill will be.
Save time and money with Insureon
Insureon’s industry-leading technology helps California beauty and hair salon owners save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Apply online and review quotes for the policies that best fit your business. Our insurance specialists are licensed in California and can answer your questions as you consider coverage.
To make the application go even quicker, have this information ready:
- Workforce details, such as the number and types of employees.
- Current and projected revenue.
- Business partnerships.
- Insurance history and prior claims.
- Commercial lease insurance requirements.
Apply for free beauty and hair salon insurance quotes today.